Super Micro to join S&P 500 after stock price soars more than twentyfold in two years (2024)

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Super Micro to join S&P 500 after stock price soars more than twentyfold in two years? ›

Super Micro Computer is joining the S&P 500 following a historic rally in the stock that has pushed the company's market cap past $50 billion. The shares, up more than twentyfold in the past two years and over 200% just since the start of 2024, climbed another 8% in extended trading on Friday.

The historical average yearly return of the S&P 500 is 9.88% over the last 20 years, as of the end of April 2024. This assumes dividends are reinvested. Adjusted for inflation, the 20-year average stock market return (including dividends) is 7.13%.

Zacks' proprietary data indicates that Super Micro Computer, Inc. is currently rated as a Zacks Rank 1 and we are expecting an above average return from the SMCI shares relative to the market in the next few months.

(NASDAQ: SMCI), a Total IT Solution Provider for Cloud, AI/ML, Storage, and 5G/Edge, has been selected to join the Standard and Poor's 500 (S&P 500) Index, which tracks 500 of the most valuable companies traded on the U.S. stock exchanges.

The S&P 500 has hit 20 intraday highs in 2024. As stocks climb higher many stock valuations may be stretched beyond their intrinsic value. But it's still possible to find great investment opportunities as the stock market hits new all-time highs.

40 Years (1982 – 2022): 11.6% annual return. 30 Years (1992 – 2022): 9.64% annual return. 20 Years (2002 – 2022): 8.14% annual return. 10 Years (2012 – 2022): 12.74% annual return.

Super Micro Computer stock forecast for 2025: $ 1,270.01 (45.62%)

Based on 11 Wall Street analysts offering 12 month price targets for Super Micro Computer in the last 3 months. The average price target is $1,118.00 with a high forecast of $1,500.00 and a low forecast of $800.00. The average price target represents a 25.92% change from the last price of $887.89.

This has resulted in an Earnings ESP of +16.35%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Super Micro will most likely beat the consensus EPS estimate.

Do you get dividends from sp500? ›

The S&P 500 is an index, so it does not pay dividends; however, there are mutual funds and exchange-traded funds (ETFs) that track the index, which you can invest in. If the companies in these funds pay dividends, you'll receive yours based on how many shares of the funds you hold.

These funds buy or sell very few shares each year, so most generate very little in terms of taxable capital gains, if any. But there are usually taxes due on S&P 500 funds' dividends. The exact amount of taxes varies by taxpayer, though.

S&P 500 10 Year Return is at 167.3%, compared to 180.6% last month and 161.0% last year.

Current estimates generally reveal favorable earnings growth over the next several years. As today's table shows, the earnings for the companies that comprise the S&P 500 Index are expected to increase by a combined 9.5% and 13.9%, respectively, on a year-over-year (y-o-y) basis in 2024 and 2025.

Stock market returns since 1960

This is a return on investment of 53,396.70%, or 10.26% per year. This lump-sum investment beats inflation during this period for an inflation-adjusted return of about 4,950.27% cumulatively, or 6.29% per year.

If you purchase a 10-year Treasury at time of writing, you could expect a yield of about 4.45%. Based on yields over the past 20 years, you can expect average interest payments of between 3% and 4%.